NEW DELHI, April 10: Centre has terminated the transshipment facility for Bangladesh’s export cargo just days after Bangladesh Chief Adviser Muhammad Yunus referred to India’s Northeast as ‘landlocked’ and advocated for the extension of the Chinese economy into the strategically significant region.
The transshipment facility previously allowed Bangladeshi export cargo to move to third countries through Indian Land Customs Stations (LCSs), as well as Indian ports and airports. The move to withdraw the facility was formalized on April 8 through a notification issued by the Central Board of Indirect Taxes and Customs (CBIC).
On Wednesday, the Ministry of External Affairs clarified the rationale behind the decision. “The transshipment facility extended to Bangladesh had, over a period of time, resulted in significant congestion at our airports and ports. Logistical delays and higher costs were hindering our own exports and creating backlogs,” MEA spokesperson Randhir Jaiswal stated.
He added, “The facility, therefore, has been withdrawn w.e.f. April 8, 2025. To clarify, these measures do not impact Bangladesh exports to Nepal or Bhutan transiting through Indian territory.”
Trade experts believe the rollback of this facility is likely to benefit several Indian export sectors, particularly in industries where Bangladesh is a major competitor. These include textiles, footwear, and gems and jewellery, with Bangladesh being especially strong in apparel exports.
The decision comes shortly after Muhammad Yunus, during a four-day visit to China, described India’s Northeast as a ‘landlocked’ region with “no way to reach out to the ocean.” He emphasized Bangladesh’s role as the region’s key maritime gateway, a remark that has stirred concerns in New Delhi.
“The seven states of eastern India, known as the Seven Sisters, are a landlocked region. They have no direct access to the ocean. We are the only guardian of the ocean for this entire region. This opens up a huge opportunity. It could become an extension of the Chinese economy — build things, produce things, market things, bring goods to China and export them to the rest of the world,” Yunus stated during a high-level roundtable discussion in Beijing.
Positioning Dhaka as the “only guardian of the ocean” in South Asia, the Chief Adviser urged Beijing to deepen its economic footprint in Bangladesh, a move widely seen as an attempt to assert strategic leverage over India’s Northeast.
